Wipro Plans ₹15,000 Cr Buyback, Board Strengthened with Director Appointments

Wipro Limited has proposed a significant share buyback, planning to repurchase up to 60 crore equity shares at ₹250 per share. This move represents a total buyback size of approximately ₹15,000 crore.

Ms. Tulsi Naidu is proposed for re-appointment as an Independent Director for a five-year term, and Ms. Laura Marie Miller is proposed for appointment as an Independent Director for a similar tenure.

Shareholders will have an e-voting period from April 22, 2026, to May 21, 2026, with results expected by May 25, 2026. Both the buyback proposal and the director appointments require shareholder approval.

Why this matters

The proposed buyback is designed to return surplus funds to shareholders and improve key financial metrics like Earnings Per Share (EPS) and Return on Equity (ROE).

This reflects Wipro's strong cash position.

Appointing directors with extensive experience aims to strengthen the Board's oversight and enhance strategic guidance.

This move can improve decision-making and support long-term value creation.

The backstory

Wipro has a history of returning capital to shareholders via buybacks. Previously, the company completed buybacks of ₹12,000 crore in 2023 and ₹9,500 crore in 2020, at different price points.

The company maintains a strong balance sheet with substantial cash reserves, estimated around ₹41,510 crore as of December 2025, allowing for these large capital allocation plans.

Ms. Tulsi Naidu has been serving as an Independent Director since July 2021 and is now proposed for a second term, highlighting continuity in board experience.

What changes now

• Shareholders can tender shares for the buyback at a premium price.
• The total equity base will shrink, potentially boosting EPS and ROE for remaining shareholders.
• The board will be strengthened with experienced leaders, potentially improving strategic direction and governance.
• Wipro's capital allocation strategy is shifting to focus more on returning value to shareholders.

Risks to watch

Despite the buyback, Wipro's financial performance shows mixed trends, with profit facing pressure and some analyst reports forecasting a weak outlook for FY27.

The company continues to rely on the IT services sector, and its ability to drive significant profit growth amid evolving market demands is critical.

The buyback's acceptance ratio could be affected if promoter groups participate heavily, impacting exit opportunities for retail investors.

Peer comparison

Wipro's buyback size and capital allocation strategy align it more closely with larger Indian IT peers like TCS and Infosys, who frequently conduct similar capital return programs.

While these peers typically lead in market capitalization and revenue, Wipro's move signals a disciplined approach to managing surplus cash.

However, Wipro's profit growth has faced recent pressure, unlike some peers who have maintained stronger profit trajectories.

Context metrics

• The proposed buyback is for up to ₹15,000 crore (₹1,50,000 lakh) during the FY26–FY27 period.
• The buyback price is set at ₹250 per equity share.
• A total of 60 crore shares, representing 5.72% of total equity, are proposed for buyback.

What to track next

• Shareholder voting outcome on the proposed resolutions for the buyback and director appointments.
• Announcement of the Record Date for determining eligible shareholders for the buyback.
• The actual execution and completion of the buyback process within the stipulated timeline.
• Performance of Wipro's stock post-buyback announcement and in anticipation of the buyback process.
• Future guidance and performance updates from Wipro, focusing on profit growth and strategic initiatives.